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TG4 Annual Public Funding Review 2012

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TG4 Annual Public Funding Review 2012 TG4 Annual Public Funding Review 2012 A report submitted to the Minister for Communications, Energy and Natural Resources further to section 124(4) of the Broadcasting Act, 2009. Prepared for The Broadcasting Authority of Ireland Prepared by www.indecon.ie October 2013 Contents Page Executive Summary i 1 Introduction and Background to Review 1 1.1 Introduction 1 1.2 Background to the Review 1 1.3 Methodology and Structure of the Report 2 1.4 Acknowledgements 4 2 Trends in the Irish Economy and Broadcasting Industry 5 2.1 Introduction 5 2.2 Overview of the Irish Economy 5 2.3 Trends in the Irish Broadcasting Industry 8 3 Examination of Extent to Which TG4 Commitments Have Been Met 14 3.1 Introduction 14 3.2 TG4 Performance against Commitments 2012 14 3.3 TG4 Fulfilment of its Public Service Statement 45 3.4 Summary of Findings 47 4 Review of TG4’s Role in Supporting Creativity 2012 48 4.1 Introduction 48 4.2 Creative Staff Supported by TG4 48 4.3 Innovation in TG4 content 50 4.4 TG4 Support for the Independent Production Sector 52 4.5 Summary of Findings 54 5 Analysis of TG4’s Financial Performance 56 5.1 Introduction 56 5.2 TG4 Group Financial Performance 2010-2012 56 5.3 TG4 Financial Outlook 66 5.4 Summary of Findings 67 6 Examination of TG4 Efficiency, Effectiveness and Value for Money in 2012 68 6.1 Introduction 68 6.2 Overview – Cost of Programming 68 6.3 Commissioning Expenditure and Cost per Hour 69 6.4 Internal Productions 74 6.5 TG4 Acquisitions Expenditure and Cost per Hour 75 6.6 TG4 Broadcasting Hours and Cost per Hour 76 6.7 TG4 Cost per Viewer Hour 77 6.8 Other Programming Costs 78 6.9 Outturn versus Budget 78 6.10 Staff Costs and Human Resources 80 6.11 Absenteeism and Related Costs 85 6.12 TG4 Subcontracting 87 Indecon International Economic Consultants TG4 Annual Public Funding Review 2012 Contents Page 6.13 TG4 Planned Cost Efficiency Measures 88 6.14 EU Compliance 88 6.15 Adequacy of TG4 Funding 89 6.16 Summary of Findings 90 7 Recommendations 91 7.1 Introduction 91 7.2 Recommendations 92 Annex 1 TG4 Audience Data 93 Indecon International Economic Consultants TG4 Annual Public Funding Review 2012 Tables, Figures & Boxes Page Table 1.1: TG4 Cost per Viewer Hour 2010-2012 viii Table 1.2: Summary of Recommendations xi Table 2.1: Annual Percentage Change in National Income 2009-2012 5 Table 2.2: Trend in National Income Per Capita and Per Person Employed 2009-2012 6 Table 2.3: Annual % Change in Total Domestic Demand 2009-2012 6 Table 2.4: Earnings and Labour Costs for 2009-2012 6 Table 2.5: Unemployment Rate in Ireland 2009-2013 7 Table 2.6: Channel Shares 2012 Vs 2011 10 Table 3.1: TG4 Commitments Performance – Programming Outputs 16 Table 3.2: TG4 Commitments Performance – Promotion and Development of the Irish Language & Culture 28 Table 3.3: TG4 Commitments Performance – Service & Technology Development 34 Table 3.4: Summary of TG4 Viewership, Reach and Share for all Programmes during Peak Time, 2010, 2011 & 2012 36 Table 3.5: TG4 Top 20 Programmes during Peak Time 2012 (Consolidated Viewing Only) 37 Table 3.6: TG4 Commitments Performance – Use of Public Funds 40 Table 3.7: TG4 Commitments Performance – Governance 42 Table 3.8: TG4 Commitments Performance – Responsible and Trustworthy Broadcaster 44 Table 3.9: TG4 2012 Performance on its Public Service Statement 45 Table 3.10: Evaluation of TG4 Commitments and Performance Against the BAI Criteria 46 Table 4.1: TG4 Creative Resources 2012 50 Table 4.2: TG4 Awards/Nominations 2010-2012 50 Table 4.3: Programmes Highlighted by TG4 as Demonstrating Creativity in 2012 51 Table 5.1: Composition of TG4 Group Income 2010-2012 57 Table 5.2: TG4 Net Commercial Income 2010-2012 58 Table 5.3: Composition of TG4 Group Commercial Income 2010-2012 59 Table 5.4: TG4 Other Revenues 2010-2012 59 Table 5.5: Analysis of Principal Drivers of TG4 Operating Costs 2010-2013 63 Table 5.6: Cost Income Ratio for TG4 2010-2012 64 Table 5.7: Income and Expenditure Statement for TG4 2010-2012 64 Table 5.8: TG4 Balance Sheet 2010-2012 65 Table 5.9: TG4 Cash Flow 2010-2012 66 Table 5.10: Outlook for TG4 Operating Costs 2013 66 Table 5.11: TG4 Expenditure for 2013 to date May 2013 and TG4 Forecast for 2013 67 Table 6.1: TG4 Programme Expenses 2010- 2012 68 Table 6.2: Overview of TG4 Commissioning Budget 2012 70 Table 6.3: TG4 Commissioning Contracts Summary 2012 71 Table 6.4: TG4 Cost of Internal Studio Commissioning 2012 73 Table 6.5: TG4 Cost of Internal Studio/Cula 4 2012 74 Table 6.6: TG4 Internal Productions - Allocation of Indirect Costs to Studio 2012 75 Indecon International Economic Consultants TG4 Annual Public Funding Review 2012 Tables, Figures & Boxes Page Table 6.7: Summary of TG4 Acquisitions 2012 75 Table 6.8: TG4 Broadcast Summary 2012 & 2011 76 Table 6.9: TG4 Cost per Viewer Hour 2010-2012 77 Table 6.10: TG4 Individual Budget Line Maximum Rates 2012 78 Table 6.11: TG4 Actual Vs Budget Income & Expenditure Summary 2012/2013 79 Table 6.12: TG4 Salary Cost per Employee 2012 Vs 2011 84 Table 6.13: TG4 Absenteeism Numbers, Hours and Cost 2012 85 Table 6.14: TG4 Privilege Days, Time in Lieu and Associated Costs 2012 86 Table 6.15: TG4 Subcontracting 2012 – Contracts 87 Table 6.16: TG4 Subcontracting 2012 88 Table 6.17: Examples of Planned TG4 Cost Efficiency Measures 2012 88 Table 7.1: Summary of Recommendations 92 Figure 1.1: Trend in TG4 Average Cost per Hour of Commissioned Programming 2010-2012 vii Figure 2.1: Consumer Price Index, Annual Percentage Change 2008-2012 7 Figure 2.2: Number of TV Homes May 08–April 13 8 Figure 2.3: Digital and Analogue TV Reception, May 11-April 13 9 Figure 2.4: TG4 Share by Platform September 2010 – December 2012 11 Figure 2.5: % Main Reception Type in Home, 2011-2012 11 Figure 2.6: Proportion of Viewing by Source for TG4 Versus RTÉ One in 2012 12 Figure 3.1: Total New Irish Language Programming Output TG4, 2012 Vs Prior Years 17 Figure 3.2: TG4 New Irish Language Programming By Genre 2010-2012 19 Figure 3.3: Target Vs Actual New Irish Language Programming by Genre, TG4 2012 20 Figure 3.4: % Differential Target Vs Actual New Irish Language Programming by Genre, TG4 2011 & 2012 20 Figure 3.5: New Irish Language Programming, Average Hours per Day TG4, 2012 Vs Prior Years 21 Figure 3.6: TG4 New Irish Language Programming by Source 2012 Vs Prior Years and 2012 Targets 22 Figure 3.7: TG4 Target Vs Actual New Irish Language Programming by Source 2012 23 Figure 3.8: % Differential Actual Vs Target New Irish Programming by Source, TG4 2011/2012 23 Figure 3.9: TG4 Total Broadcast Hours by Language 2011 & 2012 24 Figure 3.10: TG4 New Irish Language Broadcasting Hours by Source 2012 Vs 2011 24 Figure 3.11: TG4 New Vs Repeated Irish Language Broadcasting Hours 2010-2012 25 Figure 3.12: TG4 Irish Language Broadcast Hours by Genre 2011 & 2012 25 Figure 3.13: TG4 Non-Irish Language Broadcast Hours by Genre 2011 & 2012 26 Figure 3.14: TG4 Sports Programming Acquisitions 2012 Vs Prior Years 26 Figure 3.15: TG4 Main Schedule Acquisitions 2012 Vs Prior Years 27 Figure 3.16: TG4 Target vs Actual Online Performance 2012 30 Figure 3.17: Growth in TG4 Website Visitors and Player Streams 2010-2012 31 Figure 3.18: Hours Watched on TG4 Player, 2011 & 2012 32 Figure 3.19: Average Audience Viewing Shares by Channel for TG4, RTÉ and TV3 2012 35 Indecon International Economic Consultants TG4 Annual Public Funding Review 2012 Tables, Figures & Boxes Page Figure 3.20: Average Daily Reach by Channel 2011 and 2012 36 Figure 3.21: TG4 Audience Shares by Category, 2012 & 2011 38 Figure 4.1: Breakdown of Staff Supported by TG4 in the Creative Industry 2012 49 Figure 4.2: Staff Supported by TG4 in the Creative Industry by Genre 2012 49 Figure 4.3: TG4 Programming Expenditure 2010 - 2012 53 Figure 4.4: TG4 Commissioned Programming, 2011 & 2012 53 Figure 4.5: Trend in Production Funds Secured for TG4 Commissions 2010-2012 54 Figure 5.1: Trend in TG4 Income 2010-2012 56 Figure 5.2: Composition of TG4 Group Income 2010–2012 (% share) 57 Figure 5.3: Trend in TG4 Income by Source 2012 Vs Prior Years 58 Figure 5.4: Trend in TG4 Commercial Income, TG4 Public Funding and Irish Gross National Product of Irish Economy 2010–2012 59 Figure 5.5: Production Funds Facilitated for the Independent Sector by TG4 by Source, 2012 Vs Prior Years 60 Figure 5.6: Production Funds Facilitated for the Independent Sector by TG4 by Genre, 2012 Vs Prior Years 61 Figure 5.7: Trend in TG4 Operating Costs 2010-2012 62 Figure 5.8: TG4 Operating Costs by Category, 2012 versus Prior Years 62 Figure 5.9: TG4 Operating Expenditure by Category, 2012 Vs Prior Years 63 Figure 6.1: TG4 Programming Expenditure by Source, 2012 Vs Prior Years & Budget 2012 69 Figure 6.2: TG4 Commissioned Programming Expenditure Share of Exchequer Funding and Operating Expenditure, 2012 Vs Prior Years 70 Figure 6.3: TG4 Total Cost of Commissioning Contracts in 2012 by Genre 71 Figure 6.4: TG4 Trend in Cost of Commissioned Programmes by Genre 2010-2012 72 Figure 6.5: TG4 Total Cost of Commissioned Programmes by Genre 2010–2012 (% share) 72 Figure 6.6: Trend in TG4 Average Cost per Hour of Commissioned Programming 2010-2012 73 Figure 6.7: TG4 Average Cost per Hour of Commissioned Programmes by Genre 2010-2012 73 Figure 6.8: Average Cost per Hour of Acquisitions by Genre 2012 76 Figure 6.9: TG4 Cost Per Broadcast Hour by Source 2012 Vs 2011 77 Figure 6.10: TG4 Cost Per Broadcast Hour Commissioned/In-house Irish Language Programming by Genre 2012 Vs 2011 77 Figure 6.11: Actual Vs Budget Average Cost Per Hour of TG4 Commissioned Programmes
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